TSMC Reports Record Third-Quarter Profit Driven by AI Chip Demand

TSMC reported third-quarter revenue of NT$1.49 trillion ($46.36 billion), exceeding the expected NT$1.47 trillion, and net income of NT$763.1 billion, which was above the anticipated NT$746.34 billion. This marks the sixth consecutive quarter of record net profits, reflecting a 68.7% year-over-year increase.

The company's operating margin reached 58.7%, surpassing its guidance of 58%, indicating significant pricing power amid the ongoing AI chip demand. In terms of revenue breakdown, 3-nanometer chips contributed 33%, while high-performance computing platforms accounted for 68% of total revenue. The automotive segment showed the fastest growth, increasing by 23% quarter-over-quarter.

TSMC's free cash flow also rose dramatically to NT$476.56 billion from NT$139.38 billion a year earlier. Additionally, the board approved a cash dividend of NT$7.00 for the second quarter.

TSMC continues to expand its U.S. manufacturing capabilities, with a planned investment of $265 billion in Arizona and potential further investments in Texas, which underscores its commitment to enhancing its production footprint in response to growing global demand

Stocks in this article

Company Price Change Change % AI
Taiwan Semiconductor Manufacturing Company TSM.US 430.00 0.00 0.00% Hold

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